eSys to invest $227M in India
By agencies   |   Tuesday, 01 August 2006, 19:30 IST
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SINGAPORE: eSys Technologies, an IT component distribution company, has announced a $227 million investment plan in India to expand its back office operations in Chandigarh and setting up a new manufacturing facility in Himachal Pradesh. The new manufacturing plant will be set up with an initial investment of $ 11 million. This is the second plant of eSys in India, the first being in New Delhi. This new facility will expand the installed capacity of the company in India from 300,000 to 3 million units per annum. eSys Chairman and Managing Director Vikas Goel said that the company plans to run its global operations from India where skills are offered at a comparatively lower cost. At present, eSys uses its nerve center in India and Singapore for these operations. Shifting the global back office operations to India would cut their costs by one-fifth, he said. He also said that the company would invest an extra $11 million in the Chandigarh facility and increase the headcount from 500 to 2000 there. Another $20.45 million will be allotted for the working capital of the India operations and will be used for further expansions. All the money was generated internally, said Goel. “We are a zero debt company and we intend to remain like that in future,” he said. Goel also announced that the business has been growing at more than 50 percent during the current financial year. Started in 2000, the company recently forayed into personal computer business and business process and IT services. It has a market share of 23 percent.

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